ANZ is now offering the Apple Pay contactless payment solution to its five million customers in Australia – the first bank in the country to do so.
Customers can use Apple Pay to make purchases wherever contactless payments are accepted with an ANZ Visa debit or ANZ American Express card.
The bank said that more than 60 per cent of all card transactions in Australia are contactless and accepted across more than 70 per cent of contactless merchant payment terminals.
The market for Apple Pay has great potential, with Roy Morgan research saying last December that consumers could spend more than $1 billion per month in Australia using the service. There are 221,000 Amex cardholders with iPhones who are spending an average of $4,560 across all their credit cards each month.
Apple Pay is touted as a highly secure solution. When used with a credit or debit card, the actual card numbers are not stored on the device or Apple’s servers.
Instead, a unique ‘device account manager’ is assigned, encrypted and security stored in the secure element of the device. Each transaction is authorised with a one-timed dynamic security code.
Apple Pay works with the iPhone SE, iPhone 6s, iPhone 6s Plus, iPhone6, iPhone 6 Plus, and Apple Watch.
ANZ CEO, Shayne Elliott, said the introduction of Apple Pay is a significant milestone in the bank’s strategy to use digital technology to improve the customer experience. He described it as a watershed moment in the adoption of mobile payments in Australia.
“With the high adoption rates of contactless payments in Australia, our customers will be world leaders in their ability to use their mobiles to make the vast bulk of essential payments,” he said.
Responding to ANZ’s move, a Commonwealth Bank spokesperson told CIO Australia that the bank is constantly assessing the best payment solutions for its customers, including Apple Pay.
CBA currently provides a digital wallet product through its CommBank app. Since 2014, CBA customers have been able to make NFC ‘tap and pay’ payments using their Android or iPhone smartphones.
“We are continually adding new features and services to the CommBank app and as we have always done, we will announce any future enhancements when they are ready for customers,” the spokesperson said.
A Westpac spokesperson said the bank is committed to staying at the forefront of seamless, innovative payment solutions.
"We currently offer contactless payment through the Westpac mobile banking app, and we are always evaluating the best payment solutions for our customers,” the spokesperson said.
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.